Export guide

What are the payment terms?

1. What is the payment method for export payment?
  • There are two main payment types: 1) Payment through remittance, 2) Collection payment in which the bank accepts export payment,  and 3) Letter of credit in which the bank promises to pay the export payment.

2. Which remittance method do you recommend?
  • For exporters, the safest method is to proceed with 100% advance payment. However, importers prefer 100% deferred payment because the former100% is risky and burdensome. Therefore, it is relatively safer for a bank to proceed with a letter of credit that promises to pay the export payment. You should note, however, that the risk is still high if the credit rating of the bank you are using is low. With that in mind, transactions should be conducted through opening a letter of credit through global banks with high recognition and reliability.

  • If you choose the remittance method, for example, after shipment, the exporter can send a copy of B/L to the importer by e-mail, then receive the full payment and deliver the original copy.

3. What is a Letter of Credit (L/C)?
  • Letter of credit is a document in which a bank promises to pay for export.
    It is made by the importer through the importer's bank, which is expressed as "opening".
    When a letter of credit is opened, the exporter will be advised to bring the export shipping documents and necessary documents as the letter of credit has arrived from the exporting bank. After the exporter provides the relevant documents to the exporting bank, the export proceeds are paid through the bank.

L/C - Letter of Credit

COMPANY : Busan Cosmetics Business Association

OWNER : Mun Oesuk

TEL : +82-51-997-8880

FAX : +82-51-955-3884

ADDRESS :  48434, 309, Suyeong-ro, Nam-gu, Busan (Daeyeon-dong) Social Hall (Fifth Hall), B105

BUSINESS LICENSE : 169-82-00213

Privacy hygiency supervisor : Mun Oesuk

E-MAIL : bcba100 @ naver.com


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